CAT 2017 [slot 1] Question with solution 06

Question 6:
If a seller gives a discount of 15% on retail price, she still makes a profit of 2%. Which of the following ensures that she makes a profit of 20%?
  1. Give a discount of 5% on retail price.
  2. Give a discount of 2% on retail price.
  3. Increase the retail price by 2%.
  4. Sell at retail price.
Option: 4
Explanation:

Let the retail price be M and cost price be C.

Given,

0.85 M = 1.02 C

M = 1.2 C

If he wants 20% profit he has to sell at 1.2C, which is nothing but the retail price.

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